MELBOURNE, June 25, 2026, 02:04 AEST
- BHP closed at A$59.50 in Sydney on Wednesday, slipping 0.7%. Its London shares dropped 2.15% to 3,045 pence.
- Unions could launch joint strikes at Port Hedland if wage talks collapse on July 7.
- BHP said CEO-elect Brandon Craig is set to take over on July 1. The company bumped up its Jansen Stage 2 price tag to US$6.9 billion.
BHP Group’s workplace dispute at Port Hedland is still unresolved. The company put forward a draft enterprise agreement for around 450 port workers, but unions said it fails to address their key demands. Talks between the parties are set to continue.
BHP shares in Australia dropped 42 cents Wednesday. Rio Tinto was down 1.2% at A$173.92. Fortescue slipped 0.1% to A$19.25.
Port Hedland moves all of BHP’s Western Australia iron ore exports. BHP shipped 290 million tonnes through Port Hedland last financial year. ABC estimates a big hit to BHP from a major disruption at A$110 million to A$126 million a day.
BHP faces strike votes from two unions at its key Australian iron ore hub. The Electrical Trades Union said around 100 members voted for stoppages ranging from half an hour to 24 hours. Over 100 members of the Australian Manufacturing Workers’ Union also took part, with 89.4% supporting action. BHP said it has contingency plans and will keep negotiating.
Unions are calling for job classifications and enforceable, equal terms for workers with matching skills and experience. Strike action could begin with five days’ notice.
Griffith University’s David Peetz thinks union gains in oil and gas may leave workers thinking membership pays. BHP’s Australia boss Geraldine Slattery warned in March that the country’s top mining role could slip away if cost and productivity issues aren’t addressed. Jon Mills at Morningstar said BHP and Rio may look to ramp up automation if wage bills climb.
Wider industrial action still requires more notice and, for some, a fresh ballot. ETU and AMWU workers can move after five days’ notice. Over 100 Australian Workers Union members put in for approval to hold a strike vote on June 18. BHP’s export operations could get squeezed by a collective strike across maintenance teams, even with backup plans in place.
BHP faces higher costs at its Jansen potash project in Canada, where Stage 2 is now set at US$6.9 billion, up from US$4.9 billion. The first production is slated for late fiscal 2031. The company expects to record a US$2.3 billion impairment, which is a non-cash reduction to the asset’s book value. Craig said Jansen is still an “important pillar of BHP’s strategy.” BHP
BHP shares closed down 5.6% last Friday after the Jansen update, marking their steepest drop since April 2025. William Taylor at ETF Shares said the move was about “immediate capital intensity,” but he still called the long-term Jansen outlook attractive. Reuters
Brandon Craig will replace Mike Henry as BHP CEO starting July 1. Craig ran BHP’s Western Australia iron ore arm and has been president for the Americas since March 2024.
